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Wednesday, February 19, 2014

Free Shipping

Every customer wants free shipping, but as we all know, there is no such thing. At the end of the day, someone will have to pay to have an item delivered. There's no way around that.

Having said that, if the "Free Shipping" option persuades someone to make a purchase, then it is something that should be considered and used to your advantage, as it does not mean that you have to absorb the cost.

Free shipping is about perception.

If, for example, you sell item A for $24.95 plus shipping, and the average shipping cost adds up to $3.95, then experiment with offering item A for $28.90 with Free Shipping in the contiguous United States, for example.

The reason I mention free shipping as an option to the contiguous US only, is because it is the only formula I know that works well. Beyond that, it starts costing you money.

In lieu of offering a free shipping option for every item, you can also set a pre-determined dollar amount that, when reached, triggers the free shipping option. However, keep in mind that by doing so, you risk losing a few sales as some customers do not like to add additional items they may or may not need, just to get free shipping, so keep that in mind.

Offering Free Shipping simplifies the purchase process and decision, as it takes the “thinking” part out of the equation.